Wise Giving Wednesday: Charity Fraud Awareness Week and How to Avoid Scams
Across the world organizations are joining forces to help donors stay vigilant against charity fraud.
What Is Charity Fraud Awareness Week?
This week, we’d like to draw attention to the Fraud Advisory Panel and the Charity Commission for England and Wales’ Charity Fraud Awareness Week, taking place from December 8–12 this year.
The goal of this campaign is to bring together organizations across the charity and not-for-profit sectors worldwide to raise awareness and share best practices for preventing fraud and cybercrime.
According to the Fraud Advisory Panel’s Charity Fraud Report 2024, among 139 participating charities, 42% reported experiencing fraud or attempted fraud. Of the detected cases, 50% were committed by individuals within the organization, and 44% of charities did not have a fraud response plan in place.
Common Charity Scams Donors Should Watch For
To help you stay safe from fraud this giving season, we’d like to outline some of the ways bad actors may attempt to scam you and what to watch out for, along with a few tips to consider before making a donation.
Keep in mind that scams can take many forms, and fraudsters may try to target you through direct mail, telemarketing, online platforms, or anywhere you choose to give.
Bad actors may attempt to scam you by:
Tugging at your heartstrings. Many scammers prey on good intentions by sharing emotional stories about people or animals in desperate need, often without providing specific or verifiable details. They may also exploit humanitarian crises or natural disasters to deceive donors and take advantage of your well-intended, hard-earned money.
Using a slightly altered version of a real charity’s name. Fraudsters will sometimes use names that are very similar to those of trusted charities, counting on people not taking the time to verify that they’re giving to the legitimate organization.
Taking advantage of individuals who can’t recall whether they’ve donated before. Unfortunately, they sometimes target people with cognitive challenges, pretending that the person has previously supported their organization.
Using crowdfunding. Scammers will often use online resources such as social media platforms to trick individuals into giving to a made-up person or tragedy through use of fraudulent stories and photos. These criminals might also use AI technology to help create images or even stories.
Tips to Consider BeforeYou Give
Think before you click. Be careful not to click on links or scan QR codes before you’ve vetted an organization. Visit charity websites to confirm the organization’s identity.
Match the name. Ensure you’re giving to the right charity, also by visiting charity websites and cross-checking to confirm the correct name.
Be wary of false identity. If you get an appeal from a charity staff member through email or social media, you can contact the charity directly to ensure they are an employee of the organization to which you intend to give.
Look for government registration. About 80% of states require charities to register with either their attorney general’s office or secretary of state. Check here to see if the charity in question is registered with the IRS to solicit funds, but keep in mind that registration is not an endorsement.
Giving to a BBB Accredited Charity can help you give with confidence. As always, trust but verify.
Building Trust Series: Beverly Francis-Gibson CEO of Together Women Rise
In this episode of our Building Trust Video series, we talk with Beverley Francis-Gibson, Chief Executive Officer of Together Women Rise. Read our full report on the organization here.
Recent Reports
We are always working with charities to publish or update reports for donors. Visit Give.org or local BBBs to check out any charity before giving. Our recently evaluated charities include:
Finally, remember to let us know by going to give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.
BBB Wise Giving Alliance offers the following tips for donors to consider along with a list of resources and interviews with BBB Accredited Charities that are raising funds for Ukraine-related relief assistance.
